I have made a full time income as a tutor in two different countries. It's very possible if you have a solid system and learn to market a bit.
Consider building your expertise in a very specific niche. I began as a general SAT tutor but refined my system and eventually began teaching group lessons in SAT test taking strategy. I could then teach more students at the same time while charging more. After scores started coming back, word of mouth took off like crazy.
I also leveraged this to provide college application/entrance consulting to some families. I helped with everything - choosing schools and applying, essays, testing, organizing related extracurricular activities, scholarship application... Parents can be extremely grateful for helping get their kids into the college of their dreams.
You can use a lot of tools besides Craigslist for getting students. Someone mentioned a blog, and that could work, if you are clever with specific and local keywords. The more narrowly you target, the better your chances would be of attracting clients that way.
You can also call up schools, churches, and after school programs in your area and offer a free presentation on study skills. Be sure to have your name and number printed on any materials you send home with the students.
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